McAfee to be acquired by a group of investors for over $14 Billion

The global security software company McAfee announced that it will be acquired by a group of investors for over $14 Billion.

The group is led by Permira Advisers LLC (“Permira”), Advent International Corporation (“Advent”), Canada Pension Plan Investment Board (“CPP Investments”), Crosspoint Capital Partners (“Crosspoint Capital”), GIC Private Limited (“GIC”) and Abu Dhabi Investment Authority (“ADIA”).

As part of the transaction, the Group will acquire all outstanding shares of McAfee common stock for $26.00 per share in an all-cash transaction which will value approximately $12 billion on an equity value basis, and over $14 billion on an enterprise value basis after giving effect to repayment of McAfee debt.

The purchase price represents a premium of approximately 22.6% over McAfee’s closing share price of $21.21 on November 4, 2021, the last trading day prior to media reports regarding a potential sale of McAfee.

The President and Chief Executive Officer of McAfee, Peter Leav said:

“This transaction is a testament to McAfee’s market-leading online protection solutions, our talented employees, and outstanding customers and partners,”

“We want to thank our employees for their continued hard work and commitment to McAfee. We are thrilled to be partnering with premier firms who truly understand the cybersecurity landscape and have a proven track record of success.”

The buyer entity in the merger, Condor BidCo, Inc, has obtained equity financing and debt financing commitments for the purpose of financing the transactions contemplated by the merger agreement. Funds advised by the Investor Group have committed to capitalise Parent at the closing of the merger with an aggregate equity contribution equal to $5.2 billion on the terms and subject to the conditions set forth in signed equity commitment letters.

The transaction is expected to close in the first half of 2022, subject to customary closing conditions, including, among others, approval by McAfee shareholders, receipt of regulatory approvals, and clearance by the Committee on Foreign Investment in the United States.